Canada: Transition to 2021 National Occupational Classification System
November 9, 2022
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At a Glance
- On November 16, 2022, Canada will be transitioning to the 2021 version of the National Occupational Classification (NOC) system.
- The 4-digit NOC codes from the current system used to define occupations will be replaced by 5-digit NOC codes that better distinguish between occupation and skill types under new Training, Education, Experience, and Responsibilities (TEER) categories.
The situation
On November 16, 2022, Canada will be transitioning to the 2021 version of the National Occupational Classification (NOC) system. In the new system, the 4-digit NOC codes used to define occupations will be replaced by 5-digit NOC codes.
A closer look
The changes to the NOC framework can be summarized as follows:
- New Training, Education, Experience, and Responsibilities (TEER) categories will indicate the updated skill level of each NOC code. Notably, skill type B occupations, under which approximately one-third of 2016 NOC codes fall, have been divided into two TEERs, 2 and 3, to create clearer distinctions based on employment requirements.
| TEER | Skill Type | Occupation Types | Examples |
| TEER 0 | Skill Type 0 | Management | Financial Managers, Engineering Managers |
| TEER 1 | Skill Type A | Usually require a university degree | Chemists, Software Engineers |
| TEER 2 | Skill Type B | Usually require a college diploma, ≥2 years of apprenticeship training, or supervisory occupations | Executive Assistants, User Support Technicians |
| TEER 3 | Skill Type B | Usually require a college diploma, <2 years of apprenticeship training, or 6+ months of on-the-job training | Athletes, Financial Sales Representatives |
| TEER 4 | Skill Type C | Usually require a high school diploma or weeks of on-the-job training | Dispatchers, Airline Ticket and Service Agents |
| TEER 5 | Skill Type D | No formal education requirement | Cashiers, Material Handlers |
- The 2021 NOC structure will have 5-digit NOC codes, with each digit representing the following:
- First digit: broad occupational category (e.g., Natural and applied sciences and related occupations)
- Second digit: TEER category
- First two digits: major group (e.g., Specialized middle management occupations in engineering, architecture, science and information systems)
- First three digits: sub-major group
- First four digits: minor group (e.g., Computer, software and Web designers and developers)
- Full five digits: unit group/occupation (e.g., Software engineers and designers)
Some examples include:
- NOC 1123 (Professional occupations in advertising, marketing and public relations) will be divided into three NOC codes: 10022 (Advertising, marketing and public relations managers, TEER 0); 11202 (Professional occupations in advertising, marketing and public relations, TEER 1); and 64409 (Other customer and information services representatives, TEER 4) under the new system. A number of other finance/business-related occupations are set to have new NOC codes.
- NOC 2174 (Computer programmers and interactive media developers) will be divided into three NOC codes, all of which will fall under TEER 1: 21230 (Computer systems developers and programmers), 21232 (Software developers and programmers), and 21234 (Web developers and programmers) under the new system. Many other information technology-related occupations will have new NOC codes.
- NOC 2132 (Mechanical engineers) will remain under one NOC code but become NOC 21301. Most engineering occupations are not set to be divided but rather simply feature a new 5-digit NOC code.
Impact on employers
The new system is expected to have implications on both permanent residence (Express Entry points calculation, Provincial Nominee Program eligibility) and temporary work permit programs (Global Skills Strategy work permit processing, and eligible occupations under the Global Talent Stream). Affected programs will have their eligibility criteria updated in response to this change.
It will also allow the federal government to better target potential applicants for permanent residence based on both their intended residence in Canada, and on their occupation, to fill gaps in Canada’s labour market.
The new NOC system may also have implications on prevailing wage rates – which Statistics Canada updates at random intervals – on various occupations in cities across the country.
Looking ahead
Fragomen can confirm that temporary and permanent residence applications filed after the November 16, 2022 will be adjudicated using the new 2021 NOC system. Fragomen will report on relevant updates, including but not limited to, whether the change in the NOC system results in financial implications for employers in the form of adjustments to prevailing wages.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
